Mr. Speaker, it really is a pleasure to speak on Bill C-28. I can recall not very long ago that we were debating what we had to cut, how we had to cut these programs, where we were going in the future, and everything looked dim and abysmal.
We are in a very different position financially in this country today than we were eight years ago, seven years ago, six years ago. It has been a very difficult struggle for all Canadians, for everyone in this House and for the government. By putting the information that we had to work for Canadians and by working with our finances we have been able to change the direction of this country.
There is absolutely no question when we look at financial institutions around the world and we hear other countries comment on Canada's move forward, we know that we as Canadians have done a tremendous task. We have brought the fiscal order of this country into a much better condition.
Granted, we have a very large debt. That debt is the next major struggle that this government is going to have to handle. There is no question that we have to look at business operations in this country. We have to look at all social programs and social transfers as we are doing in this bill. We have to look at the whole operation of this country and monitor it on a very regular and steady basis.
It is very good though that we can stand here today and not argue about what is to be cut and what we have to do to alter the development of our programs. We can say yes, we are moving in the right direction and now we need adjustments to those directions. That is what this debate today is about.
We are talking about Canada social transfers, transfers for health payments and moneys that we are going to move from the federal coffers to support provincial programs which are most important for all Canadians.
I do not believe there is one person in this House who opposes that the federal government must do what it can to help provinces carry out their plans for social assistance and health. I believe every member of the House is consistent on that, but I guess we all have differences on how it should be done. The outline that has been placed here is clearly the government's position on how these transfers should occur.
We have set a floor for the cash transfers to the provinces by the federal government this year and for the next five years of $12.5 billion. We have also suggested that there are going to be other transfers to the provinces of tax points. Those tax point transfers will be in the neighbourhood of $12.7 billion. The total transfers from the federal government to provincial governments will be over $25 billion.
People have to understand what tax point transfers are before they can understand how that money is sent to the provinces. When we talk about social programs we realize that those programs are supported by provincial and federal coffers. Provincial governments and the federal government have worked together on personal and corporate income taxes since this country was founded.
If the federal government decides that it will lower its tax revenue and allow the provinces to increase their tax revenue, at a percentage point, the provinces actually get more of our income tax, with the federal government getting less. A balance occurs to the taxpayer, but the number of dollars going to the provincial governments is higher and the number of dollars going to the federal government is lower.
We have always maintained that we will support the provincial governments through tax point transfers, allowing an adjustment at income tax time for the provinces to get more dollars and the federal government to get a few less.
At the same time, we have looked on the cash transfers as an additional balance. We have suggested to the province that they are going to be guaranteed over the next few years $25 billion in health and social transfers.
In the campaign we heard time after time from the Reform Party and from the Conservative Party that we have cut the cash transfers to the provinces. They never once talked about the tax point credits that were maintained, the tax point credits that the provincial government got.
They took one side of the story and one side only and did not deal with it in a fair and reasonable way, which I find has been the case by both those parties over the years. They take one part and dwell on it. They are very adamant about one part of the whole equation without dealing with the whole issue, the total number of dollars available to the provinces from the federal government.
Quite frankly, that total number of dollars is there to make sure that our health programs and our social transfers are there for Canadian citizens.
There is no question that in the last while one of the major issues in Ontario as well as in all the provinces of Canada has been what is happening to our health care system, where are we going with that health care system and where will we end up in the future.
What we need to do and what we have done with this legislation is make certain the provinces know what the funding will be for the future. The provinces can plan and look exactly at where they are going with that funding. They know the programs they can carry out and they know the dollars that will be flowing in for that program.
I have no question, when I start looking at making dollar amounts, base levels there, that we are following the recommendations that were brought forth by the national forum on health. We are following the recommendation of health care specialists across this country. We are following the recommendations brought forward to the federal government and the finance minister to make certain that the health care system stands well in this country and will stand well in the next several years.
We must also realize that when we come to looking at what we are doing with setting a balance of floor value of $12.5 billion on the base, that does not mean those transfer payments may not increase.
Quite different from that, it is saying that there will be a base level. There may well be increases to those programs as required. There may well be increased funding. We are projecting at this point in time a 2.5% per annum increase from present day until the year 2002.
When we look at transfer payments to the provinces, I think it is important to understand what I am talking about with regard to these tax points. I have an estimate of the transfers that would go to the provinces. The province of Ontario would receive tax credits under this legislation of $5 billion. They would also receive cash transfers of $4 billion which, to the province of Ontario, gives a total of just over $9 billion for health and social programs.
That is quite a sum of money. It is there to make sure that those programs are maintained at the highest level. All Canadians can be assured we will have programs today and in the future that will meet the needs of each and every Canadian.
Our health care system, as it is administered today, does not make differences in Canadians. It does not act in the same way that we might find the system doing in the United States or in other countries where those with a lot of money are able to access the services and those who are less fortunate, less wealthy, are unable to access the services.
Our system is blind to wealth. It is blind to other factors outside the risk of the patient. The more the need of the patient for an operation, the more the need of the patient for service, those are the patients who are treated first. It is a priority list of the health needs of Canadians.
We certainly feel as a federal government that it is the only way to go about making certain that Canadians have services available to them.
There are other issues with regard to the bill which may have been neglected. Charitable donations is one area that has been included. There are amendments in the legislation to help with gifts and donations that will help more charitable organizations and other groups which need cash.
We can think about what just happened in this region of Canada when tremendous problems were caused by the ice storm of recent weeks. There are people who contributed gifts to those areas. The increase in support for those who make charitable donations is very important to the operation not only of disaster funds but of the heart association and all other groups that go to the public on a regular basis to support the people who need extra support in our communities. There is thought given to helping those individuals.
As well, proposals have been made in the area of registered educational savings plans to help the families who wish to send their children to school. They know the costs of education will be going up astronomically over the years. There is an opportunity for families to put more money into educational savings plans which will over time help society to better educate young people. It certainly will help families to send their children to school. It will help to finance education.
I have heard young people complain a great deal about the costs of education today and the future costs of education. In a small way the bill will help young people to cope.
There are key important points in the bill that will help the underprivileged and people requiring health care and that will improve our social programs. I would like to make certain that each and every Canadian understands that the bill is doing a great deal to bolster our funding to the provinces and to make certain the provinces are able to handle those most important costs, those most important programs of the future.